- downgrade in confidence, stat gov is not able to prop up economy if needed- downgrade in confidence, after gov debt ceiling debate ended with austerity shaped bill (compromise)- downgrade in confidence, after Obama could not show leadership in debate and give boundaries
- government, and other institutions (Fed, SEC, Banks, Individual) failed
- growth panic
- no leadership on both sides of the Atlantic
- slow growth below long-term average guaranteed in developed markets whose bubbles burst
- wrong medicine currently administered
- currently, QE, monetization does not lead into healthier moneysupply in UK, USA, EU. bc of debt overhang and deleveraging process - which will still take years.